| Summary of Significant Accounting Policies | 2 Summary of Significant Accounting Policies 2.1 BASIS OF AND CHANGES IN ACCOUNTING STANDARDS 2.1.1 BASIS OF APPLICATION These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (“IFRS”), taking into account the recommendations of the International Financial Reporting Standards Interpretations Committee (IFRS IC). We have applied all standards and interpretations that were in force as of December 31, 2020 and adopted by the European Union (EU). As of December 31, 2020, there were no standards or interpretations that affected our consolidated financial statements for the years ended December 31, 2020, 2019 and 2018 that were in effect, but not yet endorsed into European law. As a result, our consolidated financial statements comply with both the IFRSs published by the International Accounting Standards Board (IASB) and those adopted by the EU. These consolidated financial statements also take into account the supplementary provisions under commercial law, which must be applied in accordance with Section 315e (1) of the German Commercial Code (Handelsgesetzbuch – HGB). In accordance with the regulations of the United States Securities and Exchange Commission, the statement of profit or loss is presented for a comparative period of three years. This extends beyond the comparative period of two years in accordance with the requirements of IFRS as adopted by the EU. The consolidated financial statements as of the reporting dates of December 31, 2020 and 2019, as well as the periods from January 1 through December 31 for the years 2020, 2019 and 2018, comprise MorphoSys AG and its subsidiaries (collectively, the “MorphoSys Group” or the “Group”). MorphoSys AG prepares the consolidated financial statements for the largest and the smallest consolidated group. In preparing the consolidated financial statements in accordance with IFRS, the Management Board is required to make certain estimates and assumptions, which have an effect on the amounts recognized in the consolidated financial statements and the accompanying notes. The actual results may differ from these estimates. The estimates and underlying assumptions are subject to continuous review. Any changes in estimates are recognized in the period in which the changes are made and in all relevant future periods. All figures in this report were rounded to the nearest euro, thousand euros or million euros. There was no material impact on the business, estimates and assumptions made or the recoverability of assets as a result of COVID-19. Due to the market approval of Monjuvi, the corresponding amount reported under the balance sheet item “In-process In the consolidated statement of cash flows, cash inflows and outflows for derivative financial instruments were reclassified from operating activities to investing activities due to incorrect classification. In order to provide comparable information for the previous year, the prior-year figures were adjusted accordingly. In financial year 2019, these were cash receipts of € 0.9 million and in 2018 cash payments of € 0.5 million. Unless stated otherwise, the accounting policies set out below were applied consistently to all periods presented in these consolidated financial statements. 2.1.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The accounting principles applied generally correspond to the policies used in the prior year. NEW OR REVISED STANDARDS AND INTERPRETATIONS ADOPTED FOR THE FIRST TIME IN THE FINANCIAL YEAR Standard / Interpretation Mandatory Adopted by Possible IFRS 3 (A) Business Combinations 01/01/2020 yes none IFRS 9, IAS 39 and IFRS 7 (A) Interest Rate Benchmark Reform 01/01/2020 yes none IFRS 16 (A) Covid-19-Related 01/01/2020 yes none IAS 1 and IAS 8 (A) Definition of Material 01/01/2020 yes yes Amendments to References to the Conceptual Framework in IFRS Standards 01/01/2020 yes none (A) Amendments The effects of the amendments to IAS 1 and IAS 8 on the consolidated financial statements are not considered material and are therefore not individually explained. NEW OR REVISED STANDARDS AND INTERPRETATIONS NOT YET MANDATORILY APPLICABLE The following new or revised standards that were not yet mandatory in the reporting period or have not yet been adopted by the European Union, have not been applied prematurely. The effects on the consolidated financial statements of standards marked with “yes” are considered probable and are currently being examined by the Group. Only significant effects are described in more detail. The effects on the consolidated financial statements of the extensions to IAS 1 and IAS 8 are not considered material and, therefore, not explained separately. Standards with the comment “none” are not expected to have a material impact on the consolidated financial statements. Standard / Interpretation Mandatory Adopted by Possible Impact IFRS 3 (A) Reference to the Conceptual Framework 01/01/2022 no none IFRS 4 (A) Extension of the Temporary Exemption from Applying IFRS 9 01/01/2021 no none IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (A) Interest Rate Benchmark Reform – Phase 2 01/01/2021 yes none IFRS 17 and IFRS 17 (A) Insurance Contracts and Amendments to IFRS 17 01/01/2023 no none IAS 1 (A) Classification of Liabilities as Current or Non-current 01/01/2023 no yes IAS 1 (A) Disclosure of Accounting policies 01/01/2023 no yes IAS 8 (A) Definition of Accounting Estimates 01/01/2023 no yes IAS 16 (A) Property, Plant and Equipment – Proceeds before Intended Use 01/01/2022 no none IAS 37 (A) Amended by Onerous Contracts – Cost of Fulfilling a Contract 01/01/2022 no none Annual Improvements to International Financial Reporting Standards, 2018 – 2020 01/01/2022 no none (A) Amendments 2.2 CONSOLIDATION PRINCIPLES 2.2.1 CONSOLIDATED COMPANIES AND SCOPE OF CONSOLIDATION MorphoSys AG, as the ultimate parent company, is located in Planegg, near Munich. MorphoSys AG has one wholly owned subsidiary, MorphoSys US Inc. in Boston, Massachusetts, USA (collectively referred to as the “MorphoSys Group” or the “Group”). Effective November 16, 2020, the 100% direct investment in Lanthio Pharma B.V. (Groningen, the Netherlands) and the 100% indirect investment via Lanthio Pharma B.V. in LanthioPep B.V. (Groningen, the Netherlands) were sold. The two companies were no longer included in MorphoSys AG’s scope of consolidation as of this date. The consolidated financial statements as of December 31, 2020, were prepared by the Management Board on March 1 1 Markus Enzelberger, Ph.D., stepped down as a member of the Management Board with effect from the end of February 29, 2020. Jens Holstein stepped down as a member of the Management Board with effect from the end of November 13, 2020. Sung Lee assumed the position as Chief Financial Officer on February 2, 2021. 2.2.2 CONSOLIDATION METHODS The following Group subsidiary was included in the scope of consolidation, as shown in the table below. Company Purchase of Included in MorphoSys US Inc., Boston, Massachusetts, USA July 2018 07/02/2018 This subsidiary is fully consolidated as it is a direct wholly owned subsidiary. MorphoSys controls the subsidiary due to its full power over the investee. Additionally, MorphoSys is subject to risk exposure and has rights to variable returns from its involvement with the investee. MorphoSys also has unlimited capacity to exert power over the investee to influence its returns. The Group does not have any entities consolidated as joint ventures using the equity method, nor does it exercise a controlling influence. The assets and liabilities of the fully consolidated international entity are recognized using Group-wide uniform accounting and valuation methods. The consolidation methods applied have not changed from the previous year. Upon consolidation, the carrying amounts of the parent company’s investments in each subsidiary are offset against the parent’s share in the equity of each subsidiary. Inter-company assets and liabilities, income and expenses, and profits or losses arising from transactions between Group companies are eliminated in full. The arm’s length principle was applied to all contracts and transactions between Group companies. 2.2.3 PRINCIPLES OF FOREIGN CURRENCY TRANSLATION The Group’s consolidated financial statements are presented in euros, which is also the parent company’s functional currency. For each entity, the Group determines the functional currency. The items included in the financial statements of each entity are measured using that functional currency. TRANSACTIONS AND BALANCES Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items relating to operating business are recognized in other income or expenses. For monetary items relating to investing and financing activities, differences are recognized in finance income or finance expenses. Non-monetary GROUP COMPANIES On consolidation, the assets and liabilities of foreign operations are translated into euros at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in “other comprehensive income reserve” (equity). 2.3 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 2.3.1 CREDIT RISK AND LIQUIDITY RISK Financial instruments in which the Group may have a concentration of credit and liquidity risk are mainly cash and cash equivalents, financial assets at fair value, with changes recognized in profit or loss, other financial assets at amortized cost, derivative financial instruments and receivables. The Group’s cash and cash equivalents are mainly denominated in euros and US dollars. Financial assets at fair value, with changes recognized in profit or loss and other financial assets at amortized cost are high quality assets. Cash and cash equivalents, financial assets at fair value, with changes recognized in profit or loss, and other financial assets at amortized cost are generally held at numerous reputable financial institutions in Europe and the United States. With respect to its positions, the Group continuously monitors the financial institutions that are its counterparties to the financial instruments, as well as their creditworthiness, and does not anticipate any risk of non-performance. The changes in impairment losses for credit risks (see Note 2.4) recognized in the statement of profit or loss for the financial years 2020, 2019 and 2018 under the item impairment losses on financial assets were determined based on the rationale that negative values represent additions and positive values represent reversals of risk provisions. There were no impairments in the 2020 financial year. The increase in this allowance compared to January 1, 2020 was primarily the result of the increase of financial assets at amortized cost for which impairment losses are determined. General Impairment Model Simplified Impairment Model Total in 000’ € Stage 1 Stage 2 Stage 3 Stage 2 Stage 3 Balance as of January 1, 2019 (665 ) (506 ) 0 (90 ) 0 (1,261 ) Unused Amounts Reversed 445 427 0 90 0 962 Increase in Impairment Losses for Credit Risks recognized in Profit or Loss during the Year 0 0 0 (80 ) 0 (80 ) Change between Impairment Stages (79 ) 79 0 0 0 0 Amounts written off during the Year as uncollectible 0 0 0 0 0 0 Balance as of December 31, 2019 (299 ) 0 0 (80 ) 0 (379 ) Balance as of January 1, 2020 (299 ) 0 0 (80 ) 0 (379 ) Unused Amounts Reversed 299 0 0 80 0 379 Increase in Impairment Losses for Credit Risks recognized in Profit or Loss during the Year (1,001 ) 0 0 (424 ) 0 (1,425 ) Change between Impairment Stages 0 0 0 0 0 0 Amounts written off during the Year as uncollectible 0 0 0 0 0 0 Balance as of December 31, 2020 (1,001 ) 0 0 (424 ) 0 (1,425 ) The Group recognizes impairment losses for default risks for financial assets as follows: Balance Sheet Item as of December 31, Internal Basis for Recognition of Expected Credit Loss Provision Gross Carrying Impairment Carrying Average Cash and Cash Equivalents low Expected Twelve-Month Loss 109,797 (2 ) 109,795 0.0 % Other Financial Assets at Amortized Cost low Expected Twelve-Month Loss 847,300 (999 ) 846,301 0.1 % Accounts Receivable low Lifetime Expected Credit Losses 83,778 (424 ) 83,354 0.5 % Balance Sheet Item as of December 31, Internal Basis for Recognition of Expected Credit Loss Provision Gross Carrying Impairment Carrying Average Cash and Cash Equivalents low Expected Twelve-Month Loss 44,314 0 44,314 0.0 % Other Financial Assets at Amortized Cost low Expected Twelve-Month Loss 293,958 (299 ) 293,659 0.1 % Accounts Receivable low Lifetime Expected Credit Losses 15,162 (80 ) 15,082 0.5 % The Group is also exposed to credit risk from debt instruments that are measured at fair value in profit or loss. This includes the items “Financial Assets at Fair Value through Profit or Loss” and “Financial Assets from Collaborations”. As of December 31, 2020, the maximum credit risk corresponded to the carrying amounts of these items amounting to € 330.8 million (December 31, 2019: € 20.5 million). One of the Group’s policies requires that all customers who wish to transact business on credit undergo a credit assessment based on external ratings. Nevertheless, the Group’s revenue and accounts receivable are still subject to credit risk from customer concentration. The Group’s single most significant customer accounted for € 50.1 million of accounts receivables as of December 31, 2020 (December 31, 2019: € 8.0 million), or 60% of the Group’s total accounts receivable at the end of 2020. The Group’s top three customers individually accounted for 78%, 14% and 1% of the total revenue in 2020. As of December 31, 2019, 53% of the Group’s accounts receivable balance related to a single customer; of the total revenue in 2019, three customers individually accounted for 45%, 31% and 13%. On December 31, 2018, one customer had accounted for 33% of the Group’s accounts receivable, and the top three customers in 2018 individually accounted for 65%, 25% and 5% of the Group’s revenue. The table below shows the accounts receivables by region as of the reporting date. in € 12/31/2020 12/31/2019 Europe and Asia 4,451,611 6,984,944 USA and Canada 79,326,304 8,176,758 Other 0 0 Impairment (423,639 ) (80,000 ) Total 83,354,276 15,081,702 On December 31, 2020 and December 31, 2019, the Group’s exposure to credit risk from derivative financial instruments was assessed as low. The maximum credit risk (equal to the carrying amount) for rent deposits and other deposits on the reporting date amounted to € 1.4 million (December 31, 2019: € 1.0 million). The following table shows the contractual cash flows of financial liabilities as of the reporting date. 12/31/2020 12/31/2020 12/31/2020 12/31/2020 in €; due in Less than Between One and More than Total Trade Accounts Payable 47,558,635 0 0 47,558,635 Convertible Bonds 2,031,250 333,125,000 0 335,156,250 Financial Liabilities from Collaborations 161,250 180,346,823 529,337,547 709,845,620 12/31/2019 12/31/2019 12/31/2019 12/31/2019 in €; due in Less than Between One and More than Total Trade Accounts Payable 10,655,014 0 0 10,655,014 Convertible Bonds due to Related Parties 12,324 0 0 12,324 Financial assets and financial liabilities were not netted as of December 31, 2020. Currently, there is no legal right to offset amounts recognized, to settle on a net basis, or to realize an asset and settle a liability simultaneously. There were no financial instruments pledged as collateral as of December 31, 2020. 2.3.2 MARKET RISK Market risk represents the risk that changes in market prices, such as foreign exchange rates, interest rates or equity prices, will affect the Group’s results of operations or the value of the financial instruments held. The Group is exposed to both currency and interest rate risks. CURRENCY RISK The consolidated financial statements are prepared in euros. Both revenues and expenses of the Group are incurred in euros and US dollars. Throughout the year, the Group monitors the necessity to hedge foreign exchange rates to minimize currency risk and addresses this risk by using derivative financial instruments. In accordance with the Group’s hedging policy, highly probable cash flows and definite foreign currency receivables collectible within a twelve-month period are tested to determine if they should be hedged. MorphoSys had begun using foreign currency options and forwards to hedge its foreign exchange risk against US-dollar As of December 31, 2020, there was no unsettled foreign exchange forward agreement (December 31, 2019: one unsettled foreign exchange forward agreement; December 31, 2018: nine unsettled foreign exchange forward agreements). The unrealized gross gains in prior years from foreign exchange forward agreements were recorded in the finance result in the respective years (December 31, 2019: € 0.4 million; December 31, 2018: € 0.1 million). The Group’s exposure to foreign currency risk based on the carrying amounts of the items is shown in the table below. as of December 31, 2020; in € US$ Other Cash and Cash Equivalents 76,581,756 0 Financial Assets at Fair Value through Profit or Loss 115,134,211 0 Other Financial Assets at Amortized Cost 57,326,015 0 Accounts Receivable 28,455,909 0 Financial Assets from Collaborations 42,870,499 0 Restricted Cash (included in Other Assets, Net of Current Portion) 712,891 0 Accounts Payable and Accruals (51,436,436 ) (52,305 ) Financial Liabilities from Collaborations (516,505,855 ) 0 Total (246,861,010 ) (52,305 ) as of December 31, 2019; in € US$ Other Cash and Cash Equivalents 17,913,455 0 Financial Assets at Fair Value through Profit or Loss 16,221,808 0 Other Financial Assets at Amortized Cost 41,756,008 0 Accounts Receivable 978,368 0 Restricted Cash (included in Other Assets, Net of Current Portion) 289,537 0 Accounts Payable and Accruals (4,910,130 ) (5,662 ) Gesamt 72,249,046 (5,662 ) Different foreign exchange rates and their impact on assets and liabilities were simulated in a sensitivity analysis to determine the effects on profit or loss. A 10% increase in the euro versus the US dollar as of December 31, 2020, would have reduced the consolidated net profit by € 82.9 million. A 10% decline in the euro versus the US dollar would have increased the consolidated net profit by € 96.2 million. A 10% increase in the euro versus the US dollar as of December 31, 2019, would have increased the consolidated net loss by € 6.7 million. A 10% decline in the euro versus the US dollar would have reduced the consolidated net loss by € 7.9 million. A 10% increase in the euro versus the US dollar as of December 31, 2018, would have increased the consolidated net loss by € 1.4 million. A 10% decline in the euro versus the US dollar would have reduced the consolidated net loss by € 1.7 million. INTEREST RATE RISK The Group’s risk exposure to changes in interest rates mainly relates to fixed-term deposits and corporate bonds. Changes in the general level of interest rates may lead to an increase or decrease in the fair value of these securities. The Group’s investment focus places the safety of an investment ahead of its return and the ability to plan future cash flows. Interest rate risks are limited because all securities can be liquidated within a maximum of two years and due to the partially fixed interest rates during the term in order to ensure that planning is possible. In addition, changes in interest rates may affect the fair value of financial assets from collaborations. Different interest rates and their effect on existing investments with variable interest rates and on financial assets from collaborations were simulated in a sensitivity analysis in order to determine the effect on profit or loss. An increase of the variable interest rate by 0.5% would have increased the consolidated net profit by € 1.2 million as of December 31, 2020 (December 31, 2019: reduction of consolidated net loss by € 0.3 million; December 31, 2018: reduction of consolidated net loss by € 0.4 million). A decrease of the variable interest rate by 0.5% would have decreased the consolidated net profit by € 1.4 million as of December 31, 2020 (December 31, 2019: increase of consolidated net loss by € 0.3 million; December 31, 2018: increase consolidated net loss by € 0.1 million). The Group is not subject to significant interest rate risks from the liabilities currently reported on the balance sheet. 2.3.3 FAIR VALUE HIERARCHY AND MEASUREMENT METHODS The fair value is the price that would be achieved for the sale of an asset in an arm’s length transaction between independent market participants or the price to be paid for the transfer of a liability (disposal or exit price). Measurement at fair value requires that the sale of the asset or the transfer of the liability takes place on the principal market or, if no such principal market is available, on the most advantageous market. The principal market is the market a company has access to that has the highest volume and level of activity. Fair value is measured by using the same assumptions and taking into account the same characteristics of the asset or liability as would an independent market participant. Fair value is a market-based, not an entity-specific measurement. The fair value of non-financial MorphoSys applies the following hierarchy in determining and disclosing the fair value of financial instruments: Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities to which the Company has access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3: Inputs for asset or liability that are not based on observable market data (that is, unobservable inputs). The carrying amounts of financial assets and liabilities, such as other financial assets at amortized cost, as well as accounts receivable and accounts payable, approximate their fair value because of their short- term maturities. HIERARCHY LEVEL 1 The fair value of financial instruments traded in active markets is based on the quoted market prices on the reporting date. A market is considered active if quoted prices are available from an exchange, dealer, broker, industry group, pricing service, or regulatory body that is easily and regularly accessible, and prices reflect current and regularly occurring market transactions at arm’s length conditions. For assets held by the Group, the appropriate quoted market price is the buyer’s bid price. These instruments fall under Hierarchy Level 1 (see Note 6.2). HIERARCHY LEVELS 2 AND 3 The fair value of financial instruments not traded in active markets can be determined using valuation methods. In this case, fair value is estimated using the results of a valuation method that makes maximum use of market data and relies as little as possible on entity-specific inputs. If all significant inputs required for measuring fair value by using valuation methods are observable, the instrument is allocated to Hierarchy Level 2. If significant inputs are not based on observable market data, the instrument is allocated to Hierarchy Level 3. Hierarchy Level 2 contains foreign exchange forward agreements to hedge exchange rate fluctuations, term deposits and the convertible bonds. Future cash flows for these foreign exchange forward agreements are determined based on forward exchange rate curves. The fair value of these instruments corresponds to their discounted cash flows. The fair value of the term deposits and restricted cash is determined by discounting the expected cash flows at market interest rates. The fair value of the convertible bonds was determined by calculating the present value of all cash flows associated with the liability using the applicable reference interest rate with an adjustment to reflect MorphoSys’ credit risk premium. Hierarchy Level 3 financial assets comprise investments at fair value, with changes recognized directly in equity, as well as financial assets and financial liabilities from collaborations. The underlying valuations are generally carried out by employees in the finance department who report directly to the Chief Financial Officer. The valuation process and results are reviewed and discussed among the persons involved on a regular basis. To determine the fair value of financial assets from collaborations, expected cash inflows from Incyte’s planned losses resulting from the co-promotion co-promotion co-promotion Hierarchy Level 3 financial assets are presented in Notes 4 and 6.10 of the notes to the consolidated financial statements. Hierarchy Level 3 financial liabilities are presented in Note 4. Reclassifications between the hierarchy levels are generally taken into account as of the reporting dates; however, no transfers were made between the fair value hierarchy levels in 2020 or 2019. The table below shows the fair values of financial assets and liabilities and the carrying amounts presented in the consolidated balance sheet. December 31, 2020; in 000’ € Note Hierarchy Level Not classified Financial Assets Financial Assets Cash and Cash Equivalents 6.1 * 0 109,795 0 Financial Assets at Fair Value through Profit or Loss 6.2 1 0 0 287,938 Other Financial Assets at Amortized Cost 6.2 * 0 649,713 0 Accounts Receivable 6.3 * 0 83,354 0 Financial Assets from Collaborations 4 3 0 0 42,870 Other Receivables * 0 2,159 0 Current Financial Assets 0 845,021 330,808 Other Financial Assets at Amortized Cost, Net of Current Portion 6.2 2 0 196,588 0 Prepaid Expenses and Other Assets, Net of Current Portion 6.12 thereof Non-Financial n/a 183 0 0 thereof Restricted Cash 2 0 1,384 0 Non-current 183 197,972 0 Total 183 1,042,993 330,808 Accounts Payable and Accruals 7.1 * 0 0 0 Current Portion of Lease Liabilities 6.8 n/a (3,056 ) 0 0 Current Portion of Convertible Bond 7.5 2 0 0 0 Current Portion of Financial Liabilities from Collaborations 0 0 0 Current Financial Liabilities (3,056 ) 0 0 Lease Liabilities, Net of Current Portion 6.8 n/a (41,964 ) 0 0 Convertible Bond, Net of Current Portion 7.5 2 0 0 0 Financial Liabilities from Collaborations, Net of Current Portion 4 3 0 0 0 Non-current (41,964 ) 0 0 Total (45,020 ) 0 0 * Declaration waived in line with IFRS 7.29 (a). For these instruments the carrying amount is a reasonable approximation of fair value. ** Declaration waived in line with IFRS 7.29 (d) as disclosure is not required for lease liabilities. Financial Assets at Financial Liabilities Financial Liabilities at Total Carrying Amount Fair value 0 0 0 109,795 * 0 0 0 287,938 287,938 0 0 0 649,713 * 0 0 0 83,354 * 0 0 0 42,870 42,870 0 0 0 2,159 * 0 0 0 1,175,829 0 0 0 196,588 197,749 1,567 0 0 0 183 n/a 0 0 0 1,384 1,384 0 0 0 198,155 0 0 0 1,373,985 0 (128,554 ) 0 (128,554 ) * 0 0 0 (3,056 ) * * 0 (423 ) 0 (423 ) * 0 (155 ) 0 (155 ) * 0 (129,132 ) 0 (132,188 ) 0 0 0 (41,964 ) * * 0 (272,760 ) 0 (272,760 ) (334,124 ) 0 (516,351 ) 0 (516,351 ) (617,178 ) 0 (789,111 ) 0 (831,075 ) 0 (918,243 ) 0 (963,263 ) December 31, 2019; in 000’ € Note Hierarchy Level Not classified Financial Assets Financial Assets Cash and Cash Equivalents 6.1 * 0 44,314 0 Financial Assets at Fair Value through Profit or Loss 6.2 1 0 0 20,455 Other Financial Assets at Amortized Cost 6.2 * 0 207,735 0 Accounts Receivable 6.3 * 0 15,082 0 Other Receivables thereof Financial Assets * 0 1,217 0 thereof Forward Exchange Contracts used for Hedging 6.4 2 0 0 396 Current Financial Assets 0 268,348 20,851 Other Financial Assets at Amortized Cost, Net of Current Portion 6.2 2 0 84,922 0 Shares at Fair Value through Other Comprehensive Income 6.9 thereof Shares at Level 1 1 0 0 0 thereof Shares at Level 3 3 0 0 0 Prepaid Expenses and Other Assets, Net of Current Portion 6.10 thereof Non-Financial n/a 147 0 0 thereof Restricted Cash 2 0 989 0 Non-current 147 85,911 0 Total 147 354,259 20,851 Accounts Payable and Accruals 7.1 * 0 0 0 Current Portion of Lease Liabilities 6.7 n/a (2,515 ) 0 0 Convertible Bonds – Liability Component 2 0 0 0 Current Financial Liabilities (2,515 ) 0 0 Lease Liabilities, Net of Current Portion 6.7 n/a (40,042 ) 0 0 Non-current (40,042 ) 0 0 Total (42,557 ) 0 0 * Declaration waived in line with IFRS 7.29 (a). For these instruments the carrying amount is a reasonable approximation of fair value. ** Declaration waived in line with IFRS 7.29 (d) as disclosure is not required for lease liabilities. Financial Assets at Fair Financial Liabilities at Financial Liabilities Total Carrying Amount Fair value 0 0 0 44,314 * 0 0 0 20,455 20,455 0 0 0 207,735 * 0 0 0 15,082 * 1,613 0 0 0 1,217 * 0 0 0 396 396 0 0 0 289,199 0 0 0 84,922 84,922 14,077 13,690 0 0 13,690 13,690 387 0 0 387 387 1,136 0 0 0 147 n/a 0 0 0 989 989 14,077 0 0 100,135 14,077 0 0 389,334 0 (57,042 ) 0 (57,042 ) * 0 0 0 (2,515 ) * * 0 (12 ) 0 (12 ) (12 ) 0 (57,042 ) 0 (59,569 ) 0 0 0 (40,042 ) * * 0 (12 ) 0 (40,042 ) 0 (57,054 ) 0 (99,611 ) IMPAIRMENT FINANCIAL INSTRUMENTS ACCORDING TO GENERAL EXPECTED CREDIT LOSS MODEL The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost (term deposits with fixed and variable interest rates and bonds). The impairment method applied depends on whether there has been a significant increase in credit risk. If at the reporting date, the credit risk of a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to twelve-month expected credit losses (Level 1). Where the expected lifetime of an asset is less than twelve months, expected losses are measured at its expected lifetime. Expected credit losses are based on the contractual cash flows multiplied by the premium of a credit default swap according to the expected maturity of the contracting party (Level 1). In case the credit risk of a financial instrument has increased significantly since initial recognition, the Group measures impairment for that financial instrument at an amount equal to the lifetime expected credit losses. The Group currently classifies an increase in credit risk on debt instruments as significant when the premium on a counterparty credit default swap has increased by 100 basis points since the initial recognition of the instrument (Level 2). If there is an objective indication of impairment, the interest received must also be adjusted so that the interest as of this date is accrued based on the net carrying amount (carrying amount less risk provisions) of the financial instrument (Level 3). Objective evidence of a financial instrument’s impairment may arise from material financial difficulties of the issuer or the borrower, a breach of contract such as a default or delay in interest or principal payments, an increased likelihood of insolvency or other remediation process, or from the disappearance of an active market for a financial asset due to financial difficulties. Financial instruments are derecognized when it can be reasonably expected that they will not be recovered and there is objective evidence of this. This is usually assumed to be the case when financial instruments are more than two years overdue. Impairment of financial instruments is recognized under impairment losses on financial assets. FINANCIAL INSTRUMENTS ACCORDING TO SIMPLIFIED EXPECTED CREDIT LOSS MODEL In the case of accounts receivable, the Group applies the simplified approach, which requires expected lifetime losses to be recognized from the initial recognition of the receivables (Level 2). In the event of objective indications of an impairment of accounts receivable, the expected loss must be calculated as the difference between the gross carrying amount and the present value of the expected cash flows discounted at the original effective interest rate (Level 3). An indicator that there is insufficient reason to expect recovery includes a situation, among others, when internal or external information indicates that the Group will not fully receive the contractual amounts outstanding. All accounts rece |
